Statutory Sick Pay and Protection for Workers

Debate between Bill Esterson and Will Quince

Wednesday 18th March 2020 Commons Chamber

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

First, let me thank all Members from across the House who have taken the time to attend this important debate, and to speak about their concerns in such a constructive and collaborative way. I will try to answer as many of the numerous points raised as possible, but I stress that—as hon. Members know—my door is always open and my phone is always on. If Members have urgent cases, please reach out to me and other Ministers on the Treasury Bench; we will look to take the appropriate action, as necessary.

As my right hon. Friend the Chancellor made clear yesterday, we will do whatever it takes to support people, jobs and businesses, and to help people to protect their loved ones. This includes the measures we are taking on statutory sick pay, in order to ensure that everybody is supported to do the right thing and follow the Government advice on self-isolation. We must come together to fight this virus and protect the most vulnerable, and statutory sick pay is part of our welfare safety net and our wider Government offer to support people in times of need. That is why we are ensuring that our welfare safety net provides the right level of support in these exceptional times. We have extended statutory sick pay to those who are self-isolating, in line with the latest Government health guidance, and the upcoming emergency Bill will make statutory sick pay payable from day one instead of day four. This is the right thing to do to ensure that eligible individuals are supported to stay at home in self-isolation, protecting themselves and others.

As my right hon. Friend the Chancellor set out, the Government will stand behind businesses, both large and small. As a DWP Minister, I know that the best way to support people is through protecting their jobs. Small and medium-sized businesses are the backbone of our economy, and we will support them to implement these measures. Employers with fewer than 250 employees will be able to reclaim up to two weeks’ statutory sick pay paid for sickness absences relating to the coronavirus—a measure that could help up to 2 million businesses. These changes will help to provide certainty and security for individuals and businesses affected by coronavirus.

Statutory sick pay is just one of the Government’s offers of support and protection. The safety net also extends to those who are self-employed or who work in the gig economy. Workers on zero-hours contracts or in the gig economy may be eligible for sick pay and should check with their employers, but we are here to support those who are not eligible, and they can make a claim for universal credit or contributory employment and support allowance. Last week, we made changes so that the seven waiting days for employment and support allowance for new claimants affected by coronavirus or required to self-isolate will not apply. That means that ESA is payable from day one, without the need to provide medical evidence and without the need to attend a work capability assessment. Those required to self-isolate or who are ill with coronavirus can receive up to a month’s advance from day one, with no need to physically attend a jobcentre—that point was raised by Opposition Members. Any individuals affected by coronavirus will have their work search and work availability requirements switched off, and affected self-employed claimants will not have a minimum income floor applied during this period.

A number of specific points have been raised, and I will try to cover as many as possible. The hon. Member for Sefton Central (Bill Esterson) raised the important point about the communication of changes. Everything is on gov.uk, and Departments also use social media, such as Twitter, to highlight changes. There are also daily press conferences where updates on coronavirus are given by the Prime Minister, and he is increasingly being accompanied by another member of the Cabinet. However, I take the hon. Gentleman’s point that communications in times like this are incredibly important, and I will certainly feed back to the Cabinet Office that where improvements can be made to Government communications, particularly for businesses—that is the point he made—that should be done.

[Bill Esterson]

I am grateful for that answer, and I know the Minister will do his best to carry out what he just promised. Will he also make sure that that information comes to us and to local authorities in a timely fashion, as we are often in a position to get it out to a great number of people in a short space of time?

[Will Quince]

I thank the hon. Gentleman for making that case. I know from my postbag and email account that a number of businesses and individuals affected, who are concerned on health grounds or who have concerns about their employment or financial status, will contact their Member of Parliament. We are not always the first port of call—we are sometimes the last—but we are one where people expect to be able to get a response quickly, so I will look at what further guidance and advice we can give to Members of this House and through local authorities. That point about getting the message out to local authorities may well have been heard, because the relevant Minister, the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Thornbury and Yate (Luke Hall) , is sitting on the Treasury Bench behind me.

The hon. Member for Newport West (Ruth Jones) raised the point about SSP and the rebate for employees, and whether that could be for more than two weeks. I understand the point she is making. The current Government advice is for people to self-isolate for seven days or for 14 days if in a household, so we feel that the two-week limit on rebates is a proportionate response. She also asked why SSP is not at the same rate as the living wage. The current system is designed to balance support for the individual with the costs to the employer. As the Minister for Disabled People, Health and Work mentioned at the beginning of this debate, we have put £1 billion into the welfare system to provide additional financial security for people, and people on low income can get a top-up, where applicable, through UC.

Numerous hon. Members, including the hon. Members for Sefton Central (Bill Esterson) and for Leeds West (Rachel Reeves), raised a point about the private rented sector. Today at Prime Minister’s questions, the Prime Minister did say that we will be bringing forward legislation to protect private renters from eviction, and the Ministry of Housing, Communities and Local Government is considering whether we need to go further on that point.

The right hon. Member for East Ham (Stephen Timms) and the hon. Member for Airdrie and Shotts (Neil Gray) both raised a point about the consultation on the lower earnings limit. Our immediate concern in dealing with the covid-19 outbreak is to ensure that a suitable financial safety net is in place, and the benefits system does provide that. We estimate that about 60% of people earning below the lower earnings limit are already in receipt of benefits. Our longer-term aim in that consultation was about preserving the link between the employer and the employee so that the individual receives appropriate support upon return to work. That is less relevant when most people are facing short periods away from work. I or the Minister for Disabled People, Health and Work would be happy to meet those Members at a later point to discuss that further.

Numerous hon. Members asked why the focus so far has been on businesses and has not just been about individuals. It is so important that organisations are able to carry on trading, which is why the initial focus of Her Majesty’s Treasury has been on supporting business and keeping people in work where it is sensible and appropriate, based on Government guidance, to do so. Ultimately, that protects so many individuals in our society, but of course we are also looking at other measures for workers.

The hon. Member for Newcastle upon Tyne Central (Chi Onwurah), the right hon. Member for East Ham and the hon. Member for Airdrie and Shotts all made the point about raising the level of statutory sick pay. We continue to look at other support for workers to see what best mechanisms are available. Thankfully, a period of absence is likely to be short—we believe between seven and 14 days—but we know that some may need extra support, as Members across the Chamber have said. We know that low-paid workers are likely to be receiving additional support through universal credit, for example, and the advantage of universal credit is that it will go up if income falls to the equivalent SSP level.